COMPENSATION PLAN UPDATED JULY 2015

COMPENSATION PLAN UPDATED JULY 2015

TABLE OF CONTENTS Becoming a Distributor Understanding Volume Getting Started - Accumulating Discount Scale Retail Profit Fast Start Bonus Wholesale Commissions Becoming a Director Qualifying as a Director Rookie Bonus Annual Director Requalification Royalty & Presidential Bonuses Advancement & Presidential Matching Bonus Mercedes-Benz Car Bonus Commission & Bonus Pay Cycles Month-End Processing Definition of Terms........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 4 4 5 6 6 7 7 8 9 9 10 11 12 13 13 14 30-DAY MONEY BACK GUARANTEE FOR CUSTOMERS A Retail Customer not completely satisfied with our products, for any reason, can return them within 30 days of purchase for a full refund, less shipping and handling; no questions asked. 2015 FirstFitness Nutrition All rights reserved. 1430 Bradley Lane, Suite 196 Carrollton, TX 75007 972.820.2100 Rev. 7/2015

FirstFitness Nutrition provides a unique home-based business opportunity for those wanting to create additional streams of income or achieve financial independence. Whether you want to earn a few hundred dollars a month, or an unlimited income to fulfill your dreams the FirstFitness Nutrition Compensation Plan has something for everyone. The FirstFitness Nutrition Compensation Plan has been designed to maximize retail sales to Customers through an organization of FirstFitness Nutrition Independent Distributors. Each Distributor creates an organization of other Distributors who do the same. Throughout every organization, the basis of all income is the sale of FirstFitness Nutrition products. Your compensation is structured to reward you for the work you do in your various capacities as a FirstFitness Nutrition Independent Distributor. How to Earn Income with FirstFitness Nutrition... Retail Profit Fast Start Bonus Wholesale Commissions Royalty Bonus Presidential Bonus Advancement Bonus Presidential Matching Bonus Mercedes-Benz Car Bonus PLUS... FirstFitness Nutrition also offers special promotions, incentives, and contests throughout the year. FirstFitness Nutrition does not guarantee that any specific amount of earnings can be achieved by any individual FirstFitness Nutrition Independent Distributor. Actual earning results will vary from Distributor to Distributor, and will be directly proportionate to the desire, time, and effort put into building your business. 3

BECOMING A DISTRIBUTOR BECOMING A FIRSTFITNESS NUTRITION INDEPENDENT DISTRIBUTOR When a completed Distributor Application and Agreement has been received, processed and accepted by FirstFitness Nutrition, an applicant becomes a FirstFitness Nutrition Independent Distributor. FirstFitness Nutrition reserves the right to refuse any Distributor Application. Throughout the Compensation Plan and Policies & Procedures, the terms Independent Distributor, Distributor, FirstFitness Nutrition Distributor, FFN Distributor, FirstFitness Nutrition Independent Distributor, and you shall refer to any person whose Distributor Application and Agreement has been signed, received, and accepted by FirstFitness Nutrition. The terms FirstFitness Nutrition Distributor(s) and Distributor(s) are interchangeable throughout all FirstFitness Nutrition materials, including the Compensation Plan and Policies & Procedures. Distributors are FirstFitness Nutrition Independent Distributors. NO PURCHASE REQUIRED Distributors are not required to purchase any product, sales tools, marketing supplies or services from FirstFitness Nutrition or their sponsors in order to become or remain a FirstFitness Nutrition Distributor. The only required purchase is an Online Distributor Kit - $39 (optional in some states). ANNUAL DISTRIBUTOR RENEWAL Distributor must annually renew their Distributorship status. The annual renewal payment of $39 is due on or before the anniversary date of the original Distributorship Agreement. Any Distributor who does not renew within 30 days after the Distributorship expiration date will be deemed to have voluntarily terminated the Distributor relationship with FirstFitness Nutrition and, thereby, forfeited all sponsorship rights, position status, downline organization and any applicable future compensation. 70% PERCENT RULE Seventy percent (70%) of products purchased from FirstFitness Nutrition must be retailed or consumed before reorders are made. For the purpose of this rule, a sale may include a purchase for personal or family use. UNDERSTANDING VOLUME Throughout this manual, the term volume is used extensively. Volume is a key element in the Compensation Plan and is the basis for qualifying and working your way to higher ranks. Each FirstFitness Nutrition product has a Personal Volume (PV) and a Commissionable Volume (CV) value assigned to it. As you order FFN products, you accumulate Personal Volume (PV) credit that is applicable to the products ordered. Your PV is part of your Personal Group Volume (PGV) which determines your wholesale buying discount and profit level. PERSONAL VOLUME (PV) Includes your personal product purchases, plus all your Retail and UBC Customers product purchases ordered online or directly from the company. PERSONAL GROUP VOLUME (PGV) Includes your Personal Volume (PV), plus all the product purchases of all Distributors in your Personal Group. ORGANIZATIONAL VOLUME (OV) Includes your Personal Group Volume (PGV), plus all your downline Directors PGV in your entire organization. COMMISSIONABLE VOLUME (CV) The value assigned to each product for the purpose of calculating Fast Start Bonuses, Wholesale Commissions, Royalty, and Presidential Bonuses. 4

GETTING STARTED The Accumulating Discount Scale determines the wholesale purchase price you, as an Independent Distributor, will pay when you order products directly from FirstFitness Nutrition. After buying products at your wholesale discount, you will then be able to sell those same products at the suggested retail price. Your wholesale buying discount (profit level) is determined by your Personal Group Volume (PGV), which consists of product purchases made by you, your Retail Customers and any Distributors in your Personal Group whose title is below that of Director (40%). Your wholesale discount gives you a profit margin from which to build a retail business (retail profit). Once a Distributor advances on the Accumulating Discount Scale, the discount percentage achieved is permanent, except at the 40% discount level. (See Annual Director Requalification requirement on pg 9). ACCUMULATING DISCOUNT SCALE How to Achieve a 20% - 40% Discount 20% Associate 25% Sr. Associate 30% Supervisor 40% Director QUALIFICATIONS Accumulate Volume or Purchase a Pak Online Distributor Kit ($39) Product + Website not included - OR - $100 Intro Pak Includes: Choose $125 in Product Free Enrollment Free Website Accumulate $500 PGV in one month - OR - $249 Business Pak Includes: Choose $300 in Product Free Enrollment Free Website Accumulate $1,500 PGV in one month - OR - $749 Supervisor Pak Includes: Choose $900 in Product Free Enrollment Free Website Accumulate $3,000 PGV in one or two consecutive months* - OR - $1,495 Director Pak* Includes: Choose $2,000 in Product Free Enrollment Free Website Product Discount 20% 25% 30% 40% BENEFITS Retail Profit Fast Start Bonus Wholesale Commissions 20% 25% 30% 40% $20 - $150 $20 - $150 $20 - $150 $20 - $150 5% 5% - 10% 10% - 20% *See Qualifying as a Director on pg 8. 5

RETAIL PROFIT All FFN Distributors earn income by purchasing products at the wholesale price and then selling them to their Customers at the retail price. The difference between your discounted (wholesale) price and the price you sell the products for is your retail profit. How Retail Profit Works... Sell product to someone in person and earn an immediate 20% - 40% profit. When Retail Customers make retail purchases on your FFN website or directly from the company, FFN will send your Retail Profit to you, which is paid on the Monthly Pay Cycle. There is no monthly volume activity requirement to receive Retail Profits. EXAMPLE: As a Director, you earn a 40% profit! You retail You paid Your profit x $100 $ 60 $ 40 10 $400 Customers Profit FAST START BONUS All FFN Distributors can earn Fast Start Bonuses when they personally enroll or upgrade their Distributors with an Intro Pak ($100), Business Pak ($249), Supervisor Pak ($749), or a Director Pak ($1,495). Fast Start Bonuses are paid on the weekly pay cycle. Earn Weekly Fast Starts Enrollment Upgrade Paks Bonus Earned Intro Pak ($100) $20 Business Pak ($249) $50 Supervisor Pak ($749) $150 PAID WEEKLY Be Active! DID YOU KNOW? All Distributors must have an Auto-Ship order of $100 PV or a Personal Volume of $150 to receive Fast Start Bonuses. Director Pak ($1,495) $150* *INCLUDES: $150 Fast Start Bonus + $150 Free Product Coupon + 1 Dream Vacation Credit 6 Note: When Fast Start Bonuses are paid, there are no Wholesale Commissions paid out. However, Qualified Upline Directors will earn Royalty Bonuses on a Commissionable Volume (CV) assigned to each Enrollment Pak.

WHOLESALE COMMISSIONS Wholesale Commissions are the difference between your wholesale discount level and that of your personally sponsored Distributors in your Personal Group. You can earn a 5% - 20% Wholesale Commission on the Commissionable Volume on monthly orders from your team of Distributors in your Personal Group. You will continue to receive Wholesale Commissions on your Distributors for as long as your discount level is at a higher level than the discount of Distributors in your Personal Group. Earn Wholesale Commissions Your Distributor Orders Their Discount Your Discount You Earn $100 20% 40% 20% $100 25% 40% 15% $100 30% 40% 10% $100 40% 40% *See Royalty Bonuses on pg. 10. Royalty Bonuses* PAID MONTHLY DID YOU KNOW? Be Active! All Distributors must have an Auto-Ship order of $100 PV or a Personal Volume of $150 to earn Wholesale Commissions. BECOMING A DIRECTOR As an FFN Distributor, your focus should be on creating a Retail Customer base, as well as building a team of other Distributors. In order to maximize all streams of income with FFN, you will want to become a Director as soon as possible! Director Benefits 40% Product Discount & Retail Profit $20 - $150 Fast Start Bonus Up to 20% Wholesale Commissions Royalty Bonus Presidential Bonus Advancement Bonus Presidential Matching Bonus Mercedes-Benz Car Bonus PLUS... FirstFitness Nutrition also offers Director-Only special promotions, events, incentives, and contests throughout the year. Log into firstfitness.com/office2office to view latest promotions. 7

QUALIFYING AS A DIRECTOR 3 Ways to Qualify as a Director An active Distributor may qualify as a Director in one of the following ways. OPTION #1 One-Month Qualification OPTION #2 One-Month Qualification OPTION #3 Two-Month Qualification Purchase a Director Pak ($1,495) All subsequent product orders placed in your qualifying month are at a 40% discount.* Achieve $3,000 PGV in one calendar month with $500 Open Volume. Once the $3,000 PGV is met, all subsequent product orders placed are at a 40% discount.* Achieve $3,000 PGV within two consecutive months with $500 Open Volume in the qualifying period. Once the $3,000 PGV is met within two consecutive months, all subsequent product orders placed are at a 30% discount.* EXAMPLE OF HOW TO QUALIFY... Month 1 Month 2 Month 3 Purchase a Director Pak ($1,495) Director* $3,000 PGV Director* $2,000 PGV $1,000 PGV Director* $1,500 PGV $1,500 PGV Director* *On the 1st of the following month you will be promoted to Director Open and Closed Volume Open Volume is your Personal Volume plus the Personal Group Volume of all Distributors in your Personal Group who are NOT qualifying as a Director in the current month. Closed Volume is all volume produced by any Distributor in your Personal Group who is qualifying for Director in the current month. 8

NEW ROOKIE BONUS Become a Director*, then during your first two calendar months: Be Royalty Qualified ($2,000 PGV) in your first month as a Director Be Royalty Qualified ($2,000 PGV) in your second month as a Director MONTH 1 MONTH 2 MONTH 3 YOU Qualifying Director Month YOU Director 40% Achieve $2,000 PGV YOU Director 40% Achieve $2,000 PGV You earn $400 * Eligibility for the Rookie Bonus begins on the first day of the calendar month after becoming a Director. Rookie Bonus will be paid on the 20th of the following month in which it was earned. ANNUAL DIRECTOR REQUALIFICATION All Directors must annually requalify their Director status between February 1st - January 31st, to maintain their rights and privileges. During the first qualification year (February 1st - January 31st) in which Director status is achieved, no requalification is necessary. However, you must requalify the following qualification year and every year thereafter. A Director may requalify in one of the following ways: OPTION 1* One Month Qualification Purchase a Director Pak ($1,495) *Option 1 Director Pak ($1,495) purchase available only through December 31, 2015. OPTION 2 Two-Month Qualification Achieve $3,000 PGV within two consecutive months with $500 Open Volume in the qualifying period. OPTION 3 Accumulated Qualification Accumulate $6,000 PGV during the qualification year**, of which $1,200 must be your Personal Volume. **Qualification Year = Feb 1 - Jan 31 Directors who do not requalify will lose their Director status and be reclassified as a Supervisor and will receive a 30% discount buying percentage. They will also lose their ability to earn Director-only Bonuses, Royalty Bonuses, Presidential Bonuses, Advancement Bonuses, Presidential Matching Bonuses, and the Mercedes-Benz Car Bonus. In addition, all of their Directors will permanently roll up so that they are directly under the next upline Director. 9

ROYALTY & PRESIDENTIAL BONUSES As a FFN Director, you can build a substantial monthly income from your downline Directors and their personal groups. Each time you help a Distributor from within your Personal Group become a Director, that Distributor and his/her Personal Group becomes a 1st Generation Director to you. When your 1st Generation Director helps a Distributor from their Personal Group become a Director, that new Director and their Personal Group becomes your 2nd Generation, etc. The FFN Compensation Plan pays Royalty Bonuses of up to 6% on the Commissionable Volume, up to five Generations of Directors. It also pays Presidential Bonuses of up to 2%, starting with your 1st Generation Directors down to, and including, the next qualified Presidential, Diamond Presidential or Crown Presidential Director with Dynamic Compression.* (See Definition of Terms on page 16.) MONTHLY QUALIFICATIONS AND BENEFITS Bronze Silver Gold Presidential Diamond Crown QUALIFICATIONS Personal Volume (PV) Personal Group Volume (PGV) Be Active Be Active Be Active Be Active Be Active Be Active $2,000 PGV $2,000 PGV $2,000 PGV $2,000 PGV $2,000 PGV $2,000 PGV Qualified Director Legs 2 3 4 5 6 Organizational Volume (OV) $50K $100K $200K 1 st Generation Royalty Bonus 6% 6% 6% 7% 7.5% 8% 2 nd Generation Royalty Bonus 3% 6% 6% 7% 7.5% 8% BENEFITS 3 rd Generation Royalty Bonus 3% 4% 6% 7% 7.5% 8% 4 th Generation Royalty Bonus 3% 4% 7% 7.5% 8% 5 th Generation Royalty Bonus 3% 7% 7.5% 8% 6 th Generation Presidential Bonus 1% 1.5% 2% BENEFITS Advancement Bonus $400 $2,000 $3,000 $12,000 $24,000 $48,000 Presidential Matching Bonus $6,000 $12,000 $24,000 Mercedes-Benz Car Bonus $600 - $1,200 $600 - $1,200 $600 - $1,200 $600 - $1,200 ACTIVE - Distributors are considered active when they have an Auto-Ship order of $100 or a Personal Volume of $150 in a calendar month. DID YOU KNOW? QUALIFIED DIRECTOR LEG - A leg in your downline that has at least one Director generating a total of at least $2,000 OV anywhere in the leg. Be Royalty Qualified! 10 All Directors must be Royalty Qualified with an Auto-Ship order of $100 PV or a Personal Volume of $150, $2,000 PGV, and meet the requirements for Qualified Director Legs and/or Organizational Volume to earn Royalty and Presidential Bonuses.

ADVANCEMENT & MATCHING BONUSES Advancement Bonus When a Director advances for the first time in their career to the rank of Bronze, Silver, Gold, Presidential, Diamond, or Crown, they become eligible to receive an Advancement Bonus. Advancement Bonuses are also cumulative. When a new Bronze Director or above advances to a higher rank during their Advancement Bonus payout period, they will continue to receive their Advancement Bonus for the previous rank advancement, plus all other Advancement Bonuses earned. Bronze Silver Gold Presidential Diamond Crown Advancement Bonus $400 $2,000 $3,000 $12,000 $24,000 $48,000 Presidential Matching Bonus $6,000 $12,000 $24,000 Payout Period 1 month 5 months 5 months 12 months 12 months 12 months The total Advancement Bonus is paid out equally over 1 month, 5 or 12 months, starting with the first month of advancement to the respective rank. There are no grace months for the Advancement Bonus. If Director is not qualified in a given month at the rank for which the Advancement Bonus is paid, the bonus is left unpaid that month. However, regular upline commissions continue to be paid. Presidential, Diamond, and Crown Ranks: only 70% of the total Organizational Volume (OV) can come from one leg. Presidential Matching Bonus In the month a Presidential or above receives an Advancement Bonus for the first time, the first upline qualified paid-as Presidential of equal or higher paid-as rank is identified as the only person who is eligible to receive a (PMB) during the Advancement Bonus payout period in which the Advancement Bonus for that rank is paid. This is the Eligible Upline Presidential. Once identified, no other upline Presidential will receive the same (PMB) on the Presidential or above receiving the Advancement Bonus for the rank during their Advancement Bonus payout period. When a Presidential or above advances to a higher title during their Presidential Bonus payout period, they become eligible to receive an additional Advancement Bonus. The Eligible Upline Presidential will continue to receive the PMB for the previous advancement. Presidential Matching Bonus is paid to the first upline sponsor (not enroller) who is paid-as a Presidential or higher. Presidential, Diamond, and Crown Ranks: only 70% of the total Organizational Volume (OV) can come from one leg. There are no grace months for the Presidential Matching Bonus. If the Eligible Upline Presidential falls below the required paid-as rank for the PMB they are eligible to receive, the PMB is not paid in that given month to anyone. However, regular upline commissions continue to be paid. As a Presidential or above advances to higher ranks, some upline Presidentials may fall off in paid-as rank status from month to month. Therefore, one Presidential or above may be the Eligible Upline Presidential for one PMB while a different upline Presidential could be eligible for another PMB on the same advancing Presidential. 11

MERCEDES-BENZ CAR BONUS Since FirstFitness Nutrition knows that our Distributors strive to live the good life with passion and align themselves with the BEST, it is only fitting that our top producers be recognized by driving in style. FirstFitness Nutrition has partnered with Mercedes-Benz USA, North America to bring this lucrative opportunity to every FirstFitness Nutrition Distributor who achieves Gold Director status with the required Car Qualified Volume requirement. Qualified Distributors may purchase or lease a brand new Mercedes-Benz (any color). This monthly bonus is applicable to new cars only (current model year or next year s model). $600 1-Star MERCEDES-BENZ CAR BONUS Be a Qualified Gold Director. Achieve a Car Qualified Volume (CQV)* of $12,000. Meet the above requirements for two consecutive months, and you are now eligible for the 1-Star Car Bonus beginning in the third month and each month thereafter, provided you qualify as 1-Star. $800 2-Star MERCEDES-BENZ CAR BONUS Be 1-Star Car Qualified. Have two personally sponsored 1-Star Car Qualified Gold Directors. Achieve a Car Qualified Volume (CQV)* of $15,000. Meet the above requirements for two consecutive months, and you are now eligible for the 2-Star Car Bonus beginning in the third month and each month thereafter, provided you qualify as 2-Star. $1,200 3-Star MERCEDES-BENZ CAR BONUS Be 1-Star Car Qualified or higher. Have two personally sponsored 2-Star Car Qualified Gold Directors. Achieve a Car Qualified Volume (CQV)* of $20,000. Meet the above requirements for two consecutive months, and you are now eligible for the 3-Star Car Bonus beginning in the third month and each month thereafter, provided you qualify as 3-Star. $300 MONTHLY CASH BONUS OPTION Don t Want a Mercedes-Benz? If you elect not to get a Mercedes-Benz, you have the option of earning a $300 monthly cash bonus instead. 12 DID YOU KNOW? *Car Qualified Volume Car Qualified Volume (CQV) is your Personal Group Volume plus the Personal Group Volume of the first Director in each leg below you, based on their recognition rank. (CQV is calculated without Dynamic Compression.) FAILURE TO MAINTAIN CAR QUALIFICATION A 1-Star Car Qualified Gold Director (or higher) who misses one month of car bonus qualification does not have to go through another two-month requalification period. However, should two consecutive months of qualification be missed, the Distributor must meet all original car qualification criteria including the two-month paid-as period.

COMMISSION & BONUS PAY CYCLES Weekly Pay Cycle Business Week Starts Business Week Ends Fast Start Bonuses are paid weekly. The weekly pay cycle runs from Sunday to Saturday night at 11:59 PM CST. All Fast Start Bonus checks are mailed the following Friday. S M T W T F S S M T W T F S Fast Start Bonus Checks Mail Out Monthly Pay Cycle The following commissions and bonuses are paid monthly: Retail Profits Wholesale Commissions Royalty Bonuses Presidential Bonuses Advancement Bonuses Presidential Matching Bonuses Mercedes-Benz Car Bonus All commissions and bonuses from the previous month s production are mailed on the 20th of the following month. All FirstFitness Nutrition commissions and bonuses are paid by check. MONTH-END PROCESSING TELEPHONE, FAX AND MAIL ORDERS If the last day of the month falls on a weekend or a legal holiday, the close of the last business day of the month for processing all telephone, fax and mail orders will be the previous business day at 5:00 PM CST. INTERNET ORDERS Internet orders may be placed until 11:59 PM CST on the last day of the month. Note: Your order must be received (and payment cleared) by that time. All orders cleared after that time will be placed into next month s business volume. COMMISSION CHECKS UNDER $10 The minimum commission check issued to a FirstFitness Nutrition Distributor is $10. Should a Distributor be eligible for a commission check of less than $10, commissions will be accumulated monthly and issued when the commission check totals $10 or more. DATA PROCESSING FEE FirstFitness Nutrition assesses a data processing fee for any Distributor receiving a monthly commission check only. This fee is 1% of the monthly commission/bonus check with a $5 minimum up to a $25 maximum. There is not a data processing fee for checks under $50. 13

DEFINITION OF TERMS The following terms are used throughout this Compensation Plan Manual. Some have specific FirstFitness Nutrition connotations, so please become familiar with them and make them a part of your vocabulary as quickly as possible. ACTIVE - Only active Distributors qualify for bonuses and commissions. Distributors are considered active when they have an Auto-Ship order of $100 or a Personal Volume of $150 in a calendar month. AUTO-SHIP - A reoccurring product order (which may be changed at any time) that is shipped automatically each month on the date selected by the Distributor or Customer. Auto-Ship is a requirement to earn certain bonuses, special incentives, and promotions. CAR QUALIFIED VOLUME (CQV) - Car Qualified Volume is your Personal Group Volume plus the Personal Group Volume of the first Director in each leg below you based on their recognition rank. (CQV is calculated without Dynamic Compression.) CLOSED VOLUME - Closed Volume is all volume produced by any Distributor in your Personal Group who is qualifying for Director in the current month. COMMISSIONABLE VOLUME (CV) - Commissionable Volume is the value assigned to each product for the purpose of calculating commissions. DOWNLINE - All Distributors in your organization who were either personally enrolled by you or another Distributor in your organization below you in your FFN Genealogy. DYNAMIC COMPRESSION - Dynamic Compression occurs when a Director (or higher) does not meet the monthly $2,000 GV requirement to earn Royalty Bonuses. The Royalty Bonuses roll up to the next upline Director or above to enhance their earnings. Group Volume from an unqualified Director s group does not compress into the upline Director s personal group for qualification purposes. ENROLLER - The enroller is usually the person who recruited the new Distributor. The enroller and sponsor can be the same person. GENERATION - Directors (or above) who have achieved at least $2,000 Personal Group Volume in a calendar month will count as a generation. LEG - Each Distributor on your first level is at the top of a leg in your downline organization. The downline organizations of each of your first level Distributors are also included in each leg. A leg goes infinitely deep. LEVEL - When you personally enroll and sponsor a Distributor that Distributor is your first level. When that personally enrolled Distributor sponsors a Distributor, that new Distributor is on your second level and so on. ORGANIZATIONAL VOLUME (OV) - Organizational Volume includes your Personal Group Volume (PGV), plus all your downline Directors PGV in your entire organization. OPEN VOLUME - Open Volume is your Personal Volume plus the Personal Group Volume of all Distributors in your Personal Group who are NOT qualifying as a Director in the current month. PERSONAL GROUP - Your Personal Group consists of you and all your downline Distributors, but excludes Directors or higher and their Personal Groups. PERSONAL GROUP VOLUME (PGV) - Personal Group Volume includes all your Personal Volume (PV), plus the product purchases of all Distributors in your Personal Group. PERSONAL VOLUME (PV) - Personal Volume includes your personal product purchases, plus your Retail, and UBC Customers product purchases ordered online or directly from the company. QUALIFIED DIRECTOR LEG - A leg in your downline that has at least one Director generating a total of at least $2,000 OV anywhere in the leg. Only Directors who have been officially promoted (as of the first of the month) may count as a Director leg. QUALIFIED RANK - Each Distributor is paid according to the rank which he/she actually qualifies for during the month. The Distributor retains the recognition rank, but is paid for the month at the level of performance actually achieved. Qualified Rank is calculated month by month. ROYALTY QUALIFIED DIRECTOR - A Director is considered Royalty Qualified when he/she has an Auto-Ship order of $100 or a Personal Volume of $150, a Personal Group Volume of $2,000 PGV, and has met the required Qualified Director Leg requirement in a given month. SPONSOR - The Distributor who is designated as the sponsor on a Distributor Application or, under whom a Distributor is placed by the enroller of the Distributor being placed. UPLINE - All Distributors who are located above you in the same leg of your organizational genealogy. 14

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